Research Of Legal Security System For Private Capital Into Telecom Industry

Since reform and openness, private capital has experienced the development process ofgrowing up gradually; it becomes the power that can not be ignored for economicdevelopment. The natural monopoly property of telecom industry has been weakeninggradually along with the development of science and technology, enhancement of people’sconsumption demand, so the reform of anti-monopoly has began in the world, of course, itincludes our country. The basic form of this reform is the access of private capital. The articleintroduces legal security system based on the analysis of causes, conditions and limitations forthe access of private capital into telecom industry, especially, based on the analysis of barriersof relevant legal system.The first part introduces the theoretical basis and realistic background of the access ofprivate capital into the telecom industry. In theory, the “competitive market” theory hasformed because of the weakening up of natural monopoly property of telecom industry; itadvocates freedom of access to the telecom market. In practice, the telecom monopoly isharmful to efficiency of competition, consumers’ welfare, the improvement and developmentof the market mechanism; the government regulation along with telecom monopoly did notimprove public welfare; due to the expansion of private capital, the liberalization of thetelecom industry has feasibility. So, the access of private capital into telecom industry alreadyhas the theoretical basis and realistic basis.The second part introduces the current situation of private capital into the telecomindustry and analyses of the barriers to entry for private capital. Chinese telecom industry hasexperienced the process of reform from monopoly to competition gradually, but, thedevelopment of private capital is not very well in the industry of telecom. Because of privatecapital itself, the characteristics of telecom industry and legal limitations, this situation isformed.The third part introduces experience of the access of private capital into telecom industryin the United States, Britain and India in law. We should learn from these countries, we canimprove legal system of telecom industry, relax control over market access, and set uptelecom independent regulator and relief agency.The fourth part is about the legal security system of private capital into the telecomindustry. This legal security system includes permission, supervision, anti-monopoly, incentive, quit and relief. The system of permission includes conditions, methods andprocedures of private capita into telecom industry. We can build the system of supervision bysetting up telecom independent regulator and carrying out asymmetric control system. We canimprove the system of anti-monopoly for the access of private capital into telecom industrythrough setting up a special enforcement agency for anti-monopoly law, forbidding telecomadministrative monopoly, establishing coordination mechanism between telecom regulatorand antitrust regulatory organization. In order to protect the substantive justice and enhancestrength of the private capital into the telecom industry, we can inspire private capital inaspects of finance, taxation, land, technology innovation. At last, the system of quit and reliefprovides security for private capital into the telecom industry.